The Board completes redeliberations of substantive topics
The Board completes redeliberations of substantive topics
Board discusses significant areas of IFRS 17
The last discussions in the redeliberation process for substantive amendments to IFRS 17 Insurance Contracts have brought further clarity on how the new standard will be applied.
At its meeting in February 2020, the International Accounting Standards Board (the Board) further considered feedback from respondents on IFRS 17 and confirmed proposed amendments in the following areas.
The Board further decided to leave the following areas of IFRS 17 unchanged.
For the last two issues, the Board’s decision on the risk mitigation option discussed above may provide an element of relief. Read our article to find out more.
“Apart from the effective date, the Board has now completed its discussions on proposed amendments. Preparers now have clarity on what IFRS 17 will look like when issued in mid-2020 and should continue to progress their implementation projects for a smooth transition.”
In March, the Board will evaluate its decisions on the amendments in their totality and discuss the proposed effective date of IFRS 17 and the proposed extension of the IFRS 9 Financial Instruments temporary exemption in IFRS 4 Insurance Contracts. Meanwhile the drafting of the final amendments will continue in line with the Board's objective to issue them in mid-2020.
You can read our summaries of the Board’s proposed amendments and the Transition Resource Group (TRG) for Insurance Contracts’ discussions in our online magazine Insurance – Transition to IFRS 17.
We will be hosting a webcast on 11 March 2020 when we will summarise the confirmed amendments to IFRS 17 and discuss what impacts these may have for insurers. We will also discuss next steps and suggested activities that insurers should be doing now to accelerate their implementation projects towards the effective date. Register here.
Please watch this space for further updates and speak to your usual KPMG contact to find out more about the Board’s deliberations.
Visit home.Kpmg/ifrs17 to read all of our insights on the new insurance contracts standard. Also, our insights on insurers’ progress with IFRS 17 and IFRS 9 implementation can be found on our In it to win it web page.
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